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What is a TV or Internet Commercial Buyout?

What is a TV or Internet Commercial Buyout?

 

A TV or internet commercial buyout is when you receive one lump sum as payment for a commercial.  Most SAG-AFTRA jobs you will have continued payments on a residual scale (like you do in SAG-AFTRA jobs).

Residuals mean, that every time your commercial airs, you are paid again! If you want to learn more about SAG-AFTRA residuals check out their website by clicking here!

Most commercial buyouts are classified as “non-union buyouts.” Although national or regional commercials are often paid on a residual scale.  Your child can also be offered a buyout, which means you get a flat payment for the commercial and do not collect residuals.

This payment can be quite high for one day of work. For example, an actor at 3-2-1- Acting Studios recently booked a holiday spot for Radio Shack, which was contracted as a buyout. She made about $4,800.00 for one day of filming!

Another example: I did a Buyout TV commercial for Herbal Life and I was paid $4,400.00, which was contracted for 3 years usage only.

With a buyout, The client can air the commercial as many times as they want (within the contracted time) without having to renegotiate any contracts or pay you any more money.  It varies greatly from one production company to another.

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